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A. Math Topics

A5. Comparative Statics

How do the solutions to an optimization problem respond to changes in its parameters?


Video Description
a. Comparative Statics of Solution Functions (Calculus) (13:50)
(0:00) comparative statics of solution functions
(2:17) differentiating the first order condition
(4:23) application: profit maximization (in terms of Q)
(6:51) comparative statics with several control variables
(9:36) application: profit maximization (in terms of L and K)
(12:38) comparative statics with constraints
b. Comparative Statics of Optimal Values: The Envelope Theorem (Calculus) (8:56)
(0:00) comparative statics of optimal values
(3:43) how does the optimal value respond to a change in a parameter?
(5:05) economic application
c. Comparative Statics of a Market Equilibrium (11:05)
(0:00) review of comparative statics
(1:10) comparative statics of an income or wage change (graphical illustration)
(2:52) rate at which a price rise eliminates excess demand (numerical example)
(5:05) effect of an income rise on equilibrium price (graphical illustration)
(7:09) effect of an income rise (algebraic derivation)
(8:00) effect of an income rise (derivatives)